We all know that owning real estate is the surest way to financial stability, and to build wealth. But the first step of the journey is to calculate how much you can afford.
If you want to get started, just scroll down and you can utilize the affordability calculator. It’s a fantastic way to get a ball park figure of how much home you can afford.

But it’s just a guestimate. There are lot of factors that go into getting an approval, and you will need to talk to a lender like me to see what you can really afford and to talk about your options.

What do Lenders Look at When Approving You for Your Home Loan?

The days of fogging a mirror to get a loan are over – and good riddance. Now lenders actually want to know that you can afford the home, make payments and still have money left over to have a life.

So what do they look for?

Credit Score – Yes, your credit is very important to a lender. And for good reason. It’s a history of how you’ve handled your finances in the past. Don’t get me wrong, you don’t need perfect credit, it just has to be good enough. The better your credit, the better interest rate you’ll get, but even if you’ve had challenges in the past and your score is not perfect, we may be able to get you a loan. No promises, but might be worth a conversation.

Income vs Expenses – Lenders also look at what you make, and what your monthly expenses are. We call it DTI, or debt to income ratio. Calculating how much money you have left over each month after paying your bills will give us a good idea of what you have left to pay the mortgage, insurance and taxes. That will be how we figure your maximum spending power when you start home shopping.

Assets – You will need money for down payment and closing costs, and some left over so you have money to live.

This is just an overview, of course. But it’s helpful to know what lenders look when figuring out how much home you can afford. To really find out what you can afford, give me a call at 503-683-2508 and I will be happy to discuss it with you.